CIMB Daybreak - 13 April 2015
MAYBANK (1155), CIMB (1023), PUNCAK (6807), AXREIT (5106), AAX (5238), HOVID (7213), IJMLAND (5215), IHH (5225), MRCB (1651), UMWOG (5243)
MAYBANK (1155), CIMB (1023), PUNCAK (6807), AXREIT (5106), AAX (5238), HOVID (7213), IJMLAND (5215), IHH (5225), MRCB (1651), UMWOG (5243)
- Six Flags keen on Malaysian entry
April 13, 2015 11:12:00 am
Unites States-based theme park owner and operator Six Flags Entertainment Corp - known for having some of the wildest and fastest roller coaster rides in the world today - plans to enter the Malaysian market and is seeking a partner to establish the brand here, said government matchmaker Malaysia Property Incorporated (MPI). MPI general manager Veena Loh said MPI was approached by a Six Flags representative less than a month ago. According to Loh, Six Flags explored the possibility of investing here several years ago, but the venture did not materialise. There are four potential states most suitable for a Six Flags' amusement park - Penang, Johor (Iskandar Malaysia), Melaka and Selangor (Sepang). (Financial Daily) Source: CIMB Daybreak - 13 April 2015... - GST Will Not Have Much Impact On Property Mart
April 13, 2015 11:11:00 am
The Goods and Services Tax (GST) will not have much impact on the property market, said president of the Malaysian Institute of Architects (PAM) Chan Seong Aun. He said property dealers should erase this perception because the development of land or buildings used for residential or for general purposes was exempted from GST. "Give them (property dealers) at least three months to cool down a little to find that the impact of GST is non-existent and only commercial buildings are subjected to six per cent GST," he told Bernama. On whether the GST would impact the property purchasing power of Gen Y, Chan recommended a salary increment by employers to maintain or raise the standards of living of the generation. He said employers in other countries which had imposed GST tend to increase the salaries of their employees. This, he said, was to increase the standards of living as well. "However, the salary increment has to be ahead of the housing price increase. Only then affordability is here to stay," he said. (Bernama) Source: CIMB Daybreak - 13 April 2015... - 99 per cent Malaysians have access to banking services: Bank Negara
April 13, 2015 11:11:00 am
About 99% of Malaysians have access to banking services at bank branches or through banking agents, says Bank Negara Malaysia. Its Development Finnace and Enterprise director Marina Kahar said the central bank introduced the banking agent initiative in 2012 under the 2011-2020 Financial Sector Master Plan. She said nationwide, 96% of mukims with a population exceeding 2,000 now have access to basic banking services compared to just 46% in 2011. Banking agents nationwide performed 34 million transactions worth RM3.5bn, she said. AgroAgents may be based at post offices, petrol stations, chain stores or sole proprietorships, and offer rural residents basic services such as cash deposits and withdrawals, she said. Banking transactions may also be made at offices of area farmers organisations and fishermens' associations or the nearest Agrobazaar, and are safe, fast and easy, she added. (Bernama) Source: CIMB Daybreak - 13 April 2015... - Moody's assigns A3 debt rating to Maybank's SGD notes
April 13, 2015 11:10:00 am
Moody's has assigned an A3 long-term foreign currency senior unsecured debt rating to Maybank's upcoming S$50m notes to be issued under its US$5bn multicurrency medium term note programme. The notes will bear a fixed rate coupon of 1.85% p.a. and will mature on 10 Apr 2017. The rating outlook is positive. (Bernama)Source: CIMB Daybreak - 13 April 2015... - CIMB's ex-CFO to buy its PE biz
April 13, 2015 11:10:00 am
A corporate exercise is brewing at CIMB Group Holdings that sees former CFO Kenny Kim and senior executives mulling a takeover of the banking group's private equity business. Under the deal, Kim and his associates are expected to acquire a 70% stake in the CIMB private equity unit, with the balance to be retained by the banking group. The takeover move is believed to have the blessings of the top management. It is learnt the senior executives have secured the funding to proceed. As of Dec 31, 2013, the private equity firm was managing over RM6bn in invested and committed capital. (Focus Malaysia) Source: CIMB Daybreak - 13 April 2015... - Prasarana says funding offer for LRT3 has to meet objectives
April 13, 2015 11:03:00 am
Prasarana welcomes any “funding” initiatives by potential project delivery partners (PDP) for the RM9bn LRT 3. New group MD Azmi Abdul Aziz admits that funding proposals of LRT 3 by PDP bidders could be an added advantage but the conditions for the financial aid must not be restrictive or against the Government’s objectives, such as restricting or compromising on the level of local participation in the project.“To my best knowledge, the Government does not restrict local bidders from teaming up with foreign entities. The JV agreement should be done accordingly at their level before submitting the proposals,” he said. “...Potential bidders are supposed to submit their proposals in early June as we plan to officially announce the winner in July,” he said. “The LRT 3 PDP fee structure and other mechanism will not be much different from the MRT 1. LRT 3 has obtained conditional approval from the Prime Minister via SPAD and the three-month public display on the proposed alignment will begin in May and land acquisition process will be done concurrently. “We anticipate land acquisition cost could go to as high as RM1bn on top of the estimated RM9bn construction cost and the new Selangor Mentri Besar has been very supportive of this development." he said. There is a short underground portion in LRT 3 as compared to the one in MRT 1 that is supposed to be in Shah Alam but it may be avoided if they could opt for an elevated viaduct which is much cheaper. (StarBiz) Source: CIMB Daybreak - 13 April 2015... - Uncertain outlook for cement industry
April 13, 2015 11:02:00 am
The concern now for the construction and cement sectors is the weak ringgit and the low oil prices, and its bearing on the Government’s development expenditure. While the cement industry is a cyclical business, an industry source says it is a volume game for cement players.With building material prices such as steel seen to be declining and cement producers under pressure to hold their cement price due to overcapacity, construction companies have locked in lower construction materials cost ahead of the GST. Grace Okuda, the ED of Cement and Concrete Association, says the outlook of the industry remains positive this year. “Our analysis shows that the industry has sufficient capacity to meet the additional demand in cement. “We are however uncertain of the outlook for 2016 and beyond..." she said. (StarBiz) Source: CIMB Daybreak - 13 April 2015... - PUNB launching new loan scheme for Bumiputera entrepreneurs
April 13, 2015 11:02:00 am
Perbadanan Usahawan Nasional (PUN) is launching a financing scheme next month to enable Bumiputera entrepreneurs own business premises with an allocation of RM30m. CEO Datuk Dzulkifli Fadzilah said PUN is currently finalising the loan facility. “We have discussed with two, three banks to cooperate in the new scheme. But lately only one bank is fully committed to this scheme,” he said. (BT, Bernama) Source: CIMB Daybreak - 13 April 2015... - Standard Chartered Malaysia to focus on wealth management
April 13, 2015 11:01:00 am
Standard Chartered Bank Malaysia sees strong growth and demand for wealth management products and services in Malaysia. MD and CEO Mahendra Gursahani said the country is the second largest wealth management market for Standard Chartered in ASEAN. "Our network advantage puts us in a strong position to facilitate trade and investment in Malaysia with our presence in all 10 ASEAN countries," he said. He said Standard Chartered's footprint markets comprising Asia, Africa and the Middle East are expected to account for 60% of the global growth in high-net-worth individuals' personal financial assets over the next three years. (Bernama)Source: CIMB Daybreak - 13 April 2015... - Naza Premira expects new Vespa Sprint to contribute 20% to sales
April 13, 2015 11:01:00 am
NAZA Premira Sdn Bhd, the sole and official importer of Vespa scooters in Malaysia, expects the new Vespa Sprint to contribute 20% to its total sales volume this year. NAZA group executive chairman and CEO Datuk Wira SM Faisal said the company is also confident to record 100% growth in sales volume this year compared to 2014. The Vespa Sprint is priced at RM13,888 (excluding GST) with two years manufacturer's warranty or 20,000km, whichever comes first. (Bernama) Source: CIMB Daybreak - 13 April 2015... - Puncak Niaga's unit receive right to abstract water from the Bernam River
April 13, 2015 10:59:00 am
Puncak Niaga Holdings Bhd said Kumpulan Darul Ehsan Bhd (KDEB) has given its unit, Puncak Niaga Sdn Bhd, a right to abstract water from the Bernam River effective May 1, 2015, for a three-month period. In an exchange filing last Friday, Puncak said the licence to abstract water was issued to KDEB by Lembaga Urus Air Selangor. (Malaysian Reserve) Source: CIMB Daybreak - 13 April 2015... - Axis REIT Sukuk's Nominal Value Increases To RM3 Billion
April 13, 2015 10:57:00 am
Axis Real Estate Investment Trust has increased the nominal value of its Islamic Medium-Term Notes Programme to RM3bn from RM300m. The tenure was extended from a 15-year programme to a perpetual programme effective 10 Apr. Securities Commission approved the increase in the size of the programme's nominal value on 19 Jan. (Bernama) Source: CIMB Daybreak - 13 April 2015... - AAX - London calling again
April 13, 2015 10:56:00 am
After a three-year hiatus, London is back again on AirAsia X Bhd’s (AAX) radar, as is a new destination in Japan and another in the Middle East. AAX also plans to scale the Hawaiian skies and fly into Honolulu via Osaka, a destination no low-cost carrier from Asia has flown to, although premium-carrier Philippine Airlines does fly there from Manila.Its acting chief executive officer (CEO) Benyamin Ismail - who just returned from a trip to Washington to find out what it takes to fly into Honolulu - says it’s a proposition that will work, even though aviation experts believe they will have to rely on Japanese and Hawaiian traffic to operate the route and getting travellers from South-East Asia to fly into Hawaii will be a bonus. “It is a big opportunity for us in Asia. There is demand, and from Osaka, it is a high-season route as getting a seat can be difficult. Airfares from Honolulu to Japan are good and that will give us (enough room) to price our fares (appropriately),’’ Benyamin says. AAX plans to begin flying to Hawaii via Osaka this year, and since it has fifth freedom rights into the US, it can pick up passengers from Osaka. (StarBiz) Source: CIMB Daybreak - 13 April 2015... - Hovid seeks to market first Malaysian drug globally
April 13, 2015 10:56:00 am
Hovid Bhd may soon be the first Malaysian company with a pharmaceutical product that can be marketed globally, if one of its products, touted as one that can reduce the risk of a mini stroke, passed the US Food and Drug Administration's trials this year, according to the company's managing director and CEO David Ho Sue San. "The studies on our drug should finish this year and if that proves to be positive, our company will initiate an IND (investigational new drug) filing. That would make it the first Malaysian pharma product in the world," said Ho, but did not reveal the time frame for that. The product, named Tocovid Suprabio, contains a compound extracted from palm oil named tocotrienol. (Financial Daily) Source: CIMB Daybreak - 13 April 2015... - IJM Land will be removed from the official list of Bursa
April 13, 2015 10:55:00 am
IJM Land will be removed from the official list of Bursa Securities with effect from 9.00 a.m., Wednesday, 15 April 2015, following the privatisation exercise by parent IJM Corp. (BMSB) Source: CIMB Daybreak - 13 April 2015... - Petronas' PFLNG Satu Surpasses 12 Million Hours Without Lost Time Injury
April 13, 2015 10:54:00 am
Petronas has made a remarkable progress in the development of its first Floating LNG facility (PFLNG Satu) by achieving 12m man hours without any lost time injury since the project started in Mar 2012. The PFLNG Satu will be moored in the Kanowit gas field, 180km off Sarawak and will produce 1.2m tonnes of LNG per year. It will play a significant role in Petronas' efforts to unlock gas reserves in the country's remote and stranded fields, which had been deemed uneconomical to develop conventionally and to help meet the growing demand for gas. (Bernama)Source: CIMB Daybreak - 13 April 2015... - EPF seeks consultation on withdrawal age
April 13, 2015 10:52:00 am
The EPF is planning to call for a public consultation as a first step towards raising the permissible age for members to withdraw their retirement savings from the current 55 years to 60 years. EPF's 2014 annual report revealed that an alarmingly high rate of 68% of all EPF members had less than RM50,000 in their accounts upon retirement. The EPF recommends having at least RM196,800 in basic savings, but statistics showed only 22% of active 54-year-old contributors met this minimum last year. A basic saving figure was derived based on a monthly income of RM820 a month for 20 years until the age of 75 years. The EPF, in its annual report 2014, put the average life expectancy of 72.6 years for men and 77.2 years for women. (StarBiz) Source: CIMB Daybreak - 13 April 2015... - EPF joint ventures still on: CEO
April 13, 2015 10:51:00 am
The Employees Provident Fund’s (EPF) two domestic joint-venture (JV) projects – Bukit Bintang City Centre (BBCC) and the development of logistics assets with the Goodman Group – are still on. Its chief executive officer (CEO), Datuk Shahril Ridza Ridzuan, said he expected the development order for the BBCC project to be submitted and approved this year. “Once approved, the JV can proceed with the actual roll-out of the project and its construction works next year,” Shahril told a media briefing. The BBCC project is a JV with UDA Holdings Bhd and the development of logistics assets is a JV with Goodman Group.On EPF’s overseas investment, Shahril said, the fund was in discussions to divest one or two of its property assets in the UK. “Probably it is now a good time to start looking at the disposals to reap the benefits,” he said. Shahril, however, declined to elaborate. (NST) Source: CIMB Daybreak - 13 April 2015... - DoubleTree hotel in KL sold for RM388mil
April 13, 2015 10:51:00 am
Real estate tycoon Asok Kumar Hiranandani of the Royal Group has bought DoubleTree Hotel, the second parcel of The Intermark to be sold in a week. The Singapore-based Royal Group Holdings, a property group which leans more towards the hospitality sector, bought the 540-room, four-star hotel for RM388m, or about RM700,000 per room, a source from Royal Group Holdings said. A hotel employee said the hotel generally had an occupancy rate of 75%. Asok, chairman of the Royal Group, was ranked 20th among Singapore’s top-50 richest, with a net worth of US$1.4bn, by Forbes last year. The Intermark comprises four parcels, office blocks Integra Tower and the Vista Tower, DoubleTree Hotel and the Intermark Mall. All four parcels were put up for sale about a year or more ago, but it was only last week that the 39-storey Integra office block was sold to Retirement Fund Inc, also known as Kumpulan Wang Persaraan, for RM1.1bn, with an annual yield of 6%. (StarBiz) Source: CIMB Daybreak - 13 April 2015... - RM38.4b high speed rail project approved
April 13, 2015 10:48:00 am
Lawmakers last Fri approved the RM38.4bn high speed rail (HSR) project which will connect Malaysia and Singapore and drive growth in the Iskandar Malaysia economic corridor. The government now has the mandate and funding needed to set up MyHSR Corp Sdn Bhd, the company that will undertake the construction of the system. As an initial investment, Ministry of Finance Inc will invest in 10m shares of MyHSR Corp for RM1 per share. Construction is expected to begin in 2016, with services operational by 2020. (Malaysian Reserve) Source: CIMB Daybreak - 13 April 2015... - Malakoff pushing to finish Tg Bin plant
April 13, 2015 10:48:00 am
Malakoff said it has spent more than RM300m to address the construction delays at its 1,000MW coal-fired power plant in Tanjung Bin, and is confident that the plant will be completed and commissioned in Mar 2016 as scheduled. CEO Datuk Syed Faisal Albar said as at Mar 2015, the actual progress of the plant was at 90.34%, compared to the scheduled progress of 95.42%. (Malaysian Reserve) Source: CIMB Daybreak - 13 April 2015... - Mahkota draws IHH interest
April 13, 2015 10:42:00 am
A potential sale of Mahkota Medical Centre has attracted the interest of IHH Healthcare Bhd, sources say. They say the sale of the hospital could be a good fit for IHH although it would also be subject to the final sale price that would be agreed upon. “It is an interesting proposition from the sellers, but the price needs to be right as well valuation-wise so that it would be a strategic fit for the company,” they say. “Prices that are being explored could be lower than the indicative US$250m (RM912.5m),” they add. The Mahkota Medical Centre is a 266-bed hospital located in the heart of Malacca City on Jalan Merdeka and is said to be up for sale, according to Bloomberg. The potential sellers include Singapore-listed healthcare services provider Health Management International Ltd which owns a 48.95% stake in the hospital but with a control over it. (StarBiz)Source: CIMB Daybreak - 13 April 2015... - Malaysian palm oil price ends higher but posts biggest weekly drop in three
April 13, 2015 10:41:00 am
Malaysian palm oil stocks in March rose for the first time in four months to 1.87 m tonnes as a stronger-than-expected recovery in yields overtook exports of the tropical oil, data from industry regulator showed on Friday. The country also saw a record month-over-month rise in palm oil production in March, according to Reuters data. CPO production surge 33.3% mom to 1.49 m tonnes, beats estimates for 18% rise. Bigger supplies of palm, the world's most traded vegetable oil, may weigh on benchmark prices as the market grapples with an abundance of rival edible oils and weak crude markets, which have dampened buyers' appetite for palm to make food and biofuel. (Reuters) For more details, please refer to our note. Source: CIMB Daybreak - 13 April 2015... - MRCB the favourite in RM1.1bil land deal
April 13, 2015 10:40:00 am
MRCB is said to be in the lead to purchase the French embassy land which is one of the few remaining sizeable parcels of land in the city centre. Sources said MRCB had the best offer on the table for the 7.9 acres that the embassy is disposing through a competitive tender. The French embassy land is said to be sold at about RM3,188 per sq ft. At that price, it will cost about RM1.1bn. The deal is expected to be signed this week, sources said. The land is located opposite the former British High Commission which was sold to SP Setia in late 2012 at RM2,200 psf. (StarBiz) Source: CIMB Daybreak - 13 April 2015... - UMW-OG seeks arbitration on alleged breach of contract
April 13, 2015 10:39:00 am
UMW Oil & Gas has started arbitration proceedings against Frontier Oil Corp to seek, among other things, an award for damages and/or compensation for all losses arising from Frontier’s alleged breach of contract, but not limited to an early termination fee amounting to US$19.2m. Frontier was to have arranged a bank guarantee of US$5m and an advance payment of US$15m for the services of UMW-OG’s Naga 7, but has failed to do so. (BMSB) While this is a negative surprise to the market, the case appears clear-cut and we understand that UMW-OG’s chances of winning the case are good. Nonetheless, it may take some time for the company to receive the US$19.2m early termination fee. In the meantime, management has been busy scouting for a new contract for Naga 7. As at Feb 2015, management was after 22 contracts worth RM5.4bn. The company’s order book stood at RM1.8bn as at 31 Dec 2014.Source: CIMB Daybreak - 13 April 2015...
